Suzlon Energy shares declined by 2.04% to trade at ₹46.03 on Friday, despite the company's strong financial performance across multiple metrics. The stock, which is a constituent of the Nifty Midcap 150 index, faced downward pressure amid broader market sentiment.

Financial Performance Shows Strong Growth

The company demonstrated remarkable revenue growth, with consolidated revenue increasing significantly from ₹6,529.09 crores in 2024 to ₹10,889.74 crores in 2025. Net profit also showed substantial improvement, rising to ₹2,071.63 crores in 2025 compared to ₹660.35 crores in 2024.

Quarterly Results Demonstrate Consistent Performance

The company's quarterly performance for September 2025 showed strong results with revenue of ₹3,870.78 crores and net profit of ₹1,279.44 crores, translating to an earnings per share of ₹0.93.

Balance Sheet Strength Improves Substantially

Suzlon Energy's balance sheet showed significant improvement with total assets increasing from ₹7,179 crores in March 2024 to ₹12,959 crores in March 2025. The company's reserves and surplus turned positive, moving from ₹1,198 crores to ₹3,373 crores during the same period.

Cash Flow and Financial Ratios Show Positive Trends

Net cash flow increased substantially from ₹59 crores in March 2024 to ₹685 crores in March 2025. Key financial ratios also improved, with the net profit margin increasing from 10.11% in 2024 to 19.02% in 2025, while return on equity grew from 16.84% to 33.92%.

Recent Corporate Actions

The company has undertaken several corporate actions recently, including the allotment of 5,55,250 equity shares under its Employee Stock Option Plan 2022 on January 8, 2026. A newspaper announcement under Regulation 30 was published on January 22, 2026, and a certificate under Regulation 74(5) of the SEBI regulations was issued for the quarter ended December 31, 2025.

Suzlon Energy has received a strong vote of confidence from Motilal Oswal, with the brokerage maintaining its buy recommendation and setting a price target of ₹74, representing a potential upside of 54% from current levels as of January 20.

Brokerage Outlook and Market Concerns

Motilal Oswal's analysis comes at a time when Suzlon Energy shares have faced pressure due to multiple market concerns. The brokerage identified key investor worries including cannibalization of wind's share in tenders from the solar segment, slow pace of wind installations, and rising competitive intensity in the wind sector.

Despite these headwinds, Motilal Oswal believes the concerns are already reflected in the current stock price, creating a favorable risk-reward scenario for investors.

Growth Drivers and Market Opportunity

The brokerage highlighted significant growth potential beyond India's targeted 100 GW wind capacity by FY2030. Data centers, Commercial & Industrial (C&I) consumers, and Public Sector Undertakings (PSUs) are expected to drive incremental wind demand of 20-24 GW by 2030.

Strategic Positioning and Competitive Advantages

Suzlon Energy's strategy to scale up its Engineering, Procurement, and Construction (EPC) share to 50% of its order book provides a meaningful competitive advantage. The company's superior execution track record compared to domestic peers, coupled with limited participation of Chinese Original Equipment Manufacturers (OEMs) in the EPC space, positions it favorably for complex and large-scale projects.

Regarding the current project pipeline, out of 40 GW projects with pending Power Purchase Agreements (PPAs), industry channel checks suggest nearly 17 GW are pure solar projects, with wind accounting for a negligible share.

Export Potential and Future Capacity

Management sees exports emerging as an additional growth driver, with orders expected in early FY2027 and supplies starting from FY2028. Suzlon Group's Executive Vice Chairman Girish Tanti, speaking at the World Economic Forum in Davos, outlined ambitious capacity expansion plans.

Analyst Consensus and Stock Performance

Suzlon Energy enjoys strong analyst support, with all nine covering analysts maintaining buy ratings, making it a consensus buy. However, the stock has faced recent volatility, ending 1% lower at ₹47.94 on Monday and trading 37% below its 52-week high of ₹74.47, which coincidentally matches Motilal Oswal's price target.

The brokerage's bullish stance reflects confidence in the company's strategic positioning and long-term growth prospects in India's expanding renewable energy sector, despite near-term market challenges.

Source: https://www.cnbctv18.com/market/suzlon-energy-share-price-bull-sees-54-percent-upside-target-buy-sell-concerns-orders-19824196.htm